According to Domino's UK financial earnings report, the company has increased its pre-tax profit by nearly 29%, which equates to roughly $26 million. The UK pizza retailer attributes social media initiatives and its Foursquare promotion for the gains.
In the earnings statement, CEO Chris Moore points to the rise in online orders — which now account for 32.7% of all orders — as proof that their web and social media efforts are paying off.
Moore reports that when it comes to the web, "Our main Facebook (Facebook) site now has in excess of 36,000 fans … In addition, we have led the way with social media initiatives such as affiliate marketing, our superfans programme and the development of a link up with Foursquare."
Moore concludes that, "all of these web-based activities offer a dual benefit of driving pizza sales online and building customer loyalty."
You may recall that the Foursquare promotion rewards mayors of UK stores with free pizza; other patrons who check-in receive a free side dish. The promotion was initially piloted in select locations but later rolled out nationwide after the program proved to successful.
Though we don't know exactly how prominent Foursquare (Foursquare) factored in to Domino's UK financial gains, we do think its encouraging that company executives are acknowledging the value of social media in helping improve the bottom line. When coupled with the fact that Starbuck's used social media to get one million customers to stores in one day, the sales potential of social media is proving to be ever more tangible.
http://mashable.com/2010/07/12/dominos-uk-social-media/
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